Euronext’s April Volumes Extend Declines, Commodities Business Improves

ETF and order book activity extended a three month decline in April while commodities continued to gain steam.

Euronext, Europe’s largest exchange, has released its trading volumes for April 2016, which picked up right where it left off last month, witnessing a sizable decline across its cash order book, according to a Euronext statement.

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For the month ending April 2016, Euronext’s average daily cash orders fell for a third consecutive month to $7,979 million (€6,948 million), having declined by a factor of -8.9% MoM from $8,767 million (€7,633 million) in March 2016. This latest order book figure at Euronext now shows a multi month trend that has permeated many other institutional venues in what has been a very light H1 2016 in terms of volumes. This trend was reinforced over a YoY timetable as well, with April 2016’s volumes constituting a loss of –23.5% YoY from April 2015.

Despite an uptick in global exchange-traded-funds (ETFs), particularly in such areas as the US in Q1 2016, Euronext’s business in this area could not get back on track, again rescinding MoM, this time to $629.02 million (€548.0 million) from $708.0 million (€617.0 million) just one month prior, or -11.2% MoM. Compared to 2015, April’s figures were also lower by -14.0% YoY, despite what has been a positive month for new listings on the exchange.

In regard to ETFs, Euronext made headlines late last month after it extended its range of ETF activities in London. The move helped enable ETF issuers to access the UK investor base alongside its existing eurozone trading and distribution network, part of an ongoing effort to expand its global reach.

In terms of Euronext’s equity index derivatives, the tepid growth experienced last month has now been fully stymied, with April 2016 not only paring the recent gains but falling to 211,268 contracts for the month – this was reflective of a loss of 253,399 contracts or 16.7% MoM from March 2016. Meanwhile, ADV of individual equity derivatives dipped as well, albeit by only -3.1% YoY from April 2015.

Finally, the one lone bright spot across Euronext’s volumes for April 2016 was across the commodities space. With precious metals in a wide state of flux, the exchange’s ADV across commodities derivatives has clearly picked up speed, reporting a figure of 70,796 contracts for the month, good for a jump of 16.1% MoM from just 60,988 contracts in March 2016, as well as a 20.9% growth YoY from April 2015.

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